Natural gas firm BG Group PLC (BG.LN) said Monday it has completed its appraisal program in the Jodari field of Block 1 offshore Tanzania, with a drill stem test on the original natural gas discovery well confirming the excellent quality of the Tertiary reservoir.MAIN FACTS:
-Drill stem test on the Jodari-1 well, the first in deep water off Tanzania, flowed at a maximum rate of 70 million standard cubic feet of natural gas per day, constrained by testing equipment.
-Results showed better than expected reservoir properties, including high connectivity and demonstrated that development wells could produce at higher rates.
-Drill stem test was conducted on one of the three successful wells on the Jodari field, in 1150 meters of water and 39 kilometers off the coast of southern Tanzania.
-Following the completion of operations at Jodari-1, the drillship Deepsea Metro-1 will relocate 22 kilometers to the north to the Mzia-2 well, also in Block 1; once there it will test an appraisal well drilled earlier this year.
-Prior to the Jodari-1 drill stem test, BG Group's acreage offshore Tanzania had produced seven consecutive natural gas discoveries and two successful appraisal wells.
-BG Group is currently conducting a 3-D seismic survey to help identify new offshore targets for its Tanzania exploration program.
-BG Group as operator has a 60% interest in Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy PLC (OPHR.LN), holding 40%.
-BG shares closed Friday at 1178 pence valuing the company at 40.08 billion pounds.